Tuesday, 1 March 2022

Formulas of Deficits in Budget

Deficit Formulas

Budgetary deficit = Total expenditure – Total receipts   or        TE>TR

Fiscal deficit = Total expenditure – Total receipts excluding borrowings.

Primary deficit = Fiscal Deficit-Interest payments.

Revenue deficit = Total revenue expenditure – Total revenue receipts.   Or   TRE>TRR


Effective Revenue Deficit= Revenue Deficit – Grants in aid for the creation of capital assets.

It was suggested by the Rangarajan Committee on Public Expenditure and was introduced in the Union Budget 2011-12.

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The Tata Group, a stalwart of the Indian corporate landscape, has left an indelible mark on the nation's economy. Founded in 1868 by Jam...